Finance Minister Nirmala Sitharaman has addressed concerns regarding potential charges on Unified Payments Interface (UPI) transactions following the introduction of a new tax bill. The minister clarified that the government has no intention of imposing fees on customers for using UPI or other digital payment methods.

The legislative proposal in question grants the central government the authority to determine which electronic payment modes or specific transactions will remain free. According to the government, this measure is designed to provide a regulatory framework for merchant discount rates (MDR) and other backend costs associated with digital payments, rather than creating a new tax burden for individual users.

While the bill provides the government with the legal flexibility to oversee the digital payments ecosystem, the Finance Minister emphasized that the policy goal remains the promotion of digital financial inclusion. The government maintains that the ability to regulate these charges is a tool to ensure the sustainability of the payment infrastructure without discouraging consumer adoption. Critics and market observers have noted that while the government's intent is to protect consumers, the bill's broad language regarding the government's power to 'decide' which modes remain free has led to public confusion about the future of digital transaction costs.